I recently had an interesting conversation with a local builder I hired to do some remodeling. We were discussing advertising and marketing. Since I work directly for builders, developers and REALTORS, I can see the huge gaping chasm between the builder world and REALTOR world.

When I became a REALTOR one of my developer friends told me to only wear my name badge when I am dealing with the actual home buyer. He said that developers see agents as door mats to walk on. So, I had to take this into consideration when dealing with builders and developers.

I think he is right about the developers' view of REALTORS. In Huntsville Alabama Real Estate we have around 2,000 agents. That is a huge amount. Many of the new agents come into the business with no real skill and very little to offer; thinking it is an easy business with lots of money to be made. Many of them have no sales, experience, business experience, no marketing and no advertising experience. The field doesn't require strong credentials or an education to get a license. Developers need results and when you can't prove results you can only talk in theory. There are about 8% of REALTORS who really work and provide results. Those remaining will be of no service to the the developers.

I asked my contracted builder what he thought about advertising and marketing. I asked him about their company philosopy when it comes to REALTORS. He has a local REALTOR listing his property. I know this REALTOR and he is a fine fellow. The builder felt like the REALTOR wasn't doing enough. He felt like the REALTOR should be spending a lot of money on this $250,000 listing. I asked him how his other sales are going. They are going as I expected, slow. So, I politely asked him if he has a budget for marketing and advertising for his own product. He spends almost nothing. I did take up for his REALTOR. I told him if there isn't money coming in for the REALTOR, how can that person spend money on advertising.

Most small to medium developers and builders are running their budgets on a shoe string. They seem very tight and unwilling to spend money. They do not feel that it is necessary to have a budget for advertising and marketing when that is the job of the REALTOR. What they fail to understand is the average REALTOR doesn't have the funds for this either. Especially, if this is the time of a slow market. When you look at the Huntsville MLS we are saturated with new inventory right now.

So, what do the successful builders and developers do? They budget 6% to 10% of the total project costs for marketing and advertising. They provide websites, brochures, and video professionally created to tell the story the best way. Don't place this task on the REALTOR. In most cases the REALTOR has to hire the same services as developer. They are usually not the professional when it comes to creating the supporting marketing materials.

REALTORS and Developers work in the same industry but have two completely different businesses. The developer wants only his product advertised and sold. The REALTOR has to spend their advertising dollars promoting their total book of business. REALTORS have to promote all of their listings. Good REALTORS understand that this is a numbers business and they can't put all their eggs in only one developer's basket. Many REALTORS have gone out of business spending money on a bad project.

This was written by Pearl Real Estate Marketing for you to make a stronger case for marketing.